Based on your facts, my thoughts and comments are as follows:
- The S corporation had no reason to loan money to the LLC. As such, I believe you made a distribution from the S corporation to yourself for the $56,000.
- Then you personally contributed the $56,000 to the LLC.
- When the LLC closed, you then have a capital loss on your "investment" to the LLC. This loss is technically what your remaining basis is in the LLC. As an example, if the LLC started out with zero basis, you contributed the $56,000 so you now have $56,000 basis. If the LLC lost $$ in 2016, then this loss will pass through to you and also reduce your basis. Whatever this remaining basis is, represents your loss. Since the contribution was only made just recently, the loss is a short term capital loss.
- Since you and your wife own each, the distribution out from the S corporation and the contribution to the LLC needs to be based on your respective ownership. This is critical for the S corporation as distributions need to be in relation to ownership.
*A reminder that posts in a forum such as this do not constitute tax advice.
Also keep in mind the date of replies, as tax law changes.
